Comparing a company's ratios to industry averages is a frequently used method of analysis. Which of the following is a limitation of this technique?

Select one:

a.

Industry data may not be readily available and must be calculated by an analyst or purchased at considerable cost

b.

Industry averages represent what other companies are doing, not necessarily what they should be doing.

c.

Other firms in the industry may not be similar in many respects and hence not a good basis for comparison

d.

All of these are limitations.